"Economy as average Joe is thinking again to move from PKR to USD" Ali

[Doom1111]

Currency diary

The currency is under pressure. After crossing 164, the PKR/USD closed at 163.89 yesterday. This is the lowest level...

www.brecorder.com

The other point to contemplate whether flexible exchange rate is the right policy in case of rising commodity prices. Well, the currency depreciation is a double whammy, as the pressure on domestic prices would come from both dollar and rupee increase in prices. That is too much to handle and must be delt with a combination of factors.


One is to let the currency to adjust a bit to curb demand. The other is to raise interest rates a bit to curb demand. Third is to do away with expansionary fiscal (or political) stance. For example, petrol sales are all time high – some of this is to higher tourism and general demand and the other factor is due to not passing on the impact of higher prices to consumers. Government must increase prices as currency depreciation has larger inflationary consequences.

He has confirmed me DM that Inflation will be 15.6% in Mid September.

 

[Will_Bite]

Currency is adjusting, and will be fine in the long term. Instead of watching the rate day to day, monitor it on a long term basis.
30 years of mess isnt cleaned up in 3 years. Markets need time to come to equilibrium.

 

[Doom1111]

Currency is adjusting, and will be fine in the long term. Instead of watching the rate day to day, monitor it on a long term basis.
30 years of mess isnt cleaned up in 3 years. Markets need time to come to equilibrium.

You did not read. Currency should adjust gradually not in a jacking shit like 1 rupee daily devaluation or a week since May. 7% is ok yearly not in just 2 months.

Than what happens? People will stop investing and rush to buy Dollar because they know you can make 7 to 8% by just buying dollar from market in a month.

 

[tahirmajid]

All the claims of growing economy is look like fake as if economy is going well rupee should be stronger. With better foreign reserve, boosting import and growing well economy, devaluation of rupee is not understandable. Looks like some trying to deceive us

 

[Doom1111]

All the claims of growing economy is look like fake as if economy is going well rupee should be stronger. With better foreign reserve, boosting import and growing well economy, devaluation of rupee is not understandable. Looks like some trying to deceive us

Shuakat Aziz was the best Finance minster of Pakistan period. All Finance mister even Dar looks like joke of life for Pakistan.

 

[Will_Bite]

You did not read. Currency should adjust gradually not in a jacking shit like 1 rupee daily devaluation or a week since May. 7% is ok yearly not in just 2 months.

Than what happens? People will stop investing and rush to buy Dollar because they know you can make 7 to 8% by just buying dollar from market in a month.

Didnt see you celebrating when currency strengthened by 7% 2 months ago. These are called market factors. If you want govt to strangulate PKR at a fixed rate, then you need to go no further than 2013-2017, when Ishaq Dars identical policy created a deep mess

 

[arifkarim]

Shuakat Aziz was the best Finance minster of Pakistan period. All Finance mister even Dar looks like joke of life for Pakistan.

Shaukat Aziz's term also ended in a current account deficit crisis

 

[arifkarim]

Didnt see you celebrating when currency strengthened by 7% 2 months ago.

Desprado was in Nepal back then

 

[akinternational]

US dollar se jitni jaldi jan churai jai behter hai.... us$ aisi currency jiski koi guarantee nahin hai... anqareeb oil dollar ka khatma hone wala hai phir dollar ko koi take tolilet paper ke liye bhi nahin khride ga... iske alawa dusri currencies bhi zer eghor hain... lekin jo ghaddar IMF aur Worldbank daku ki taraf se Pakistan men bheje hain wo PKR ko $$ se alag nahin hone denge.... laanat laanat in sab per

 

[Doom1111]

Shaukat Aziz's term also ended in a current account deficit crisis

Does not matter.

It only matters when your FM does not have relationship with other countries.


Shaukat Aziz had the best relationship with donors, and other countries. Any country does not hire FM on banking, financing, or even CA. He must have best relationship with other countries and donors like IMF, WB and ADB

Look at us know IMF is not giving us 100 billion rupee waiver on FBR sales taxes leave alone Fiscal Deficit a side.

Only International relationship matters for FM and rest is done by ECC. That is why Musharf era was best investment and business era of Pakistan in history.



Our Export also started to pick up